Welcome back to our blog, in today's post, we will discuss fictitious assets and we will also add an example of fictitious assets in the balance sheet, so if you are exploring accounting then you should read this post till the end. 

What Are Fictitious Assets?


These assets are non-physical assets that appear on a company's balance sheet but do not have any solid/tangible value.

Fictitious Assets in Balance Sheet
Fictitious Assets in Balance Sheet

Fictitious Assets List

Now let's check out the fictitious assets list:

  • Deferred Revenue
  • Accumulated Amortization
  • Prepaid Expenses
  • Goodwill
  • Promotional Expenses
  • Long-term Deferred Charges
  • Unrealized Gains/Losses

examples of fictitious assets

Now before we solve our example let me tell you examples of fictitious assets.

  • Preliminary Expenses: Costs incurred during the setup of a company, such as incorporation fees, legal expenses, etc. 

  • Goodwill: This arises when a company pays more for an acquisition than the fair value of the net assets acquired.

Now you know all the basic information let's solve our example:

Fictitious Assets in the Balance Sheet

AssetsLiabilities and Equity
Current Assets:Current Liabilities:
Cash and Cash Equivalents50KAccounts Payable30K
Accounts Receivable40KDeferred Revenue25K
Inventory60KShort-term Debt20K
Other Current Assets20KOther Current Liabilities15K
Total Current Assets170KTotal Current Liabilities90K
Non-Current Assets:Long-term Debt
Property, Plant, and Equipment200KLong-term Loans100K
Intangible Assets30KOther Long-term Liabilities50K
Other Non-Current Assets40KShareholder's Equity
Total Non-Current Assets270KCommon Stock150K
Total Assets440KRetained Earnings200K
Total Liabilities & Equity440K

In this given balance sheet The 25,000 that comes under "Deferred Revenue" in the current liabilities section is a fictitious asset. 


Here in this post, we add all the related information about fictitious assets and an example to understand how to use fictitious assets in the balance sheet.